- Taboola (TBLA, Financial) reported Q1 2025 revenues of $427 million, a 3% increase year-over-year.
- The company's Adjusted EBITDA surged 53% to $36 million, with margins expanding to 23.7%.
- Free Cash Flow increased to $36 million in Q1 2025 from $27 million in the previous year.
Taboola (TBLA) has released its financial results for the first quarter of 2025, showcasing a robust performance that exceeded expectations across all key metrics. The company reported revenues of $427 million, marking a 3% growth compared to the same period last year. This growth was primarily fueled by a 9% increase in Scaled Advertisers. However, the Average Revenue per Scaled Advertiser experienced a slight decline of 3%.
Ex-TAC Gross Profit increased by 9% to $152 million, highlighting the strength in advertising spend and a strategic shift towards higher margin partnerships with digital property partners. Meanwhile, Adjusted EBITDA rose significantly by 53% to $36 million, with margins improving to 23.7%, driven by disciplined cost management and an increase in ad spend.
The operating loss for the quarter improved substantially, coming down to $6 million from the $18 million reported in Q1 2024. Additionally, Taboola's Free Cash Flow saw a notable increase, climbing to $36 million from $27 million the previous year, attributed to improved collections and lower publisher prepayments.
Looking ahead, Taboola has set a strong financial outlook for the second quarter of 2025. The company anticipates revenues to range between $438 million and $458 million, with Adjusted EBITDA expected to be between $38 million and $44 million. For the full year 2025, Taboola is projecting revenues between $1.838 billion and $1.888 billion, with Adjusted EBITDA estimated to be between $201 million and $209 million.
